Rupee falls 20 paise to close at 83.14 against U.S. dollar

On the domestic equity market front, the BSE Sensex closed 14.54 points or 0.02% higher at 66,023.69. The broader NSE Nifty settled flat at 19,674.55.

The rupee declined by 20 paise to settle at 83.14 (provisional) against the U.S. dollar on September 25 due to rising crude oil prices and a strong American currency against major rivals overseas.

Subdued equity markets and withdrawal of foreign funds also weighed on the domestic currency, forex traders said.

At the interbank foreign exchange market, the local unit opened weak at 83.04 and traded between a high of 83.04 and a low of 83.15 against the greenback.

It finally settled at 83.14 (provisional) against the dollar, registering a fall of 20 paise from the previous close.

On Friday, the rupee climbed 19 paise to close at 82.94 against the U.S. dollar.

Friday’s gain in the rupee was attributed to JP Morgan’s announcement that it will include Indian government securities in its global bond index starting June 2024, a move which is expected to bring in $25-30 billion of inflows into the Indian debt market.

On the other hand, the dollar strengthened due to an increased month-end demand of the American currency by importers and rising U.S. Treasury yield amid concerns of further interest rate hikes by the U.S. Federal Reserve.